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Financial Analysis




Net Market Value


The market value (of an asset or broadly any economic resource) on the date of transaction (acquisition, sale, disposal, etc.) minus the actual costs associated with the transaction. Transaction costs shall not exceed those associated with comparable transactions on the open market. In other words, a transaction does, or is supposed to, take place in an orderly market (i.e., it is an orderly transaction).

Net market value = market value – actual costs

In the case of disposal, for example, net market value denotes the amount which is be expected to be received from the disposal of an asset in an orderly market after deducting all costs that could be incurred in realizing the disposal proceeds.

In a different context (and in connection with common equity), net market value (net market value of common equity) is another term for the market capitalization of a common stock.



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The financial analysis of companies is essentially undertaken with the aim to assess their performance in light of their objectives and strategies ...
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